Bank of Montreal Q3 Earnings Rise on Higher NII, Lower Provisions

Bank of Montreal BMO reported third-quarter fiscal 2025 (ended July 31) adjusted earnings per share of C$3.23, up 22.3% year over year.Results benefited from higher net interest income (NII) and non-interest income. Further, the reduction in the provision for credit losses also supported performance. However, a slight decline in deposits and higher non-interest expenses acted as headwinds.After considering non-recurring items, net income was C$2.33 billion ($1.68 billion), which rose 24.9% from the year-ago quarter.BMO’s Q3 Revenues & Expenses IncreaseTotal revenues (on an adjusted basis), net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), were C$8.99 billion ($6.52 billion), up 9.7% year over year.NII rose 14.6% year over year to C$5.5 billion ($3.9 billion). Also, non-interest income came in at C$3.49 billion ($2.53 billion), up 2.8%.Adjusted non-interest expenses increased 6.7% to C$5.01 billion ($3.63 billion).The adjusted efficiency ratio (net of CCPB) was 55.8%, down from 57.3% as of July 31, 2024.Provision for credit losses (adjusted) was C$797 million ($577.7 million) in the reported quarter, down 12% from the year-ago quarter.Loans Rise & Deposits Decline for Bank of MontrealAs of July 31, 2025, total assets were C$1.43 trillion ($1 trillion), down slightly from the prior-quarter end.Total net loans grew slightly on a sequential basis to C$677.1 billion ($490.9 billion). Total deposits decreased slightly to C$955.4 billion ($692.5 billion).BMO’s Profitability Ratios & Capital Ratios ImproveBank of Montreal’s return on common equity (as adjusted) was 12.0% in the fiscal third quarter compared with 10.6% on July 31, 2024. Adjusted return on tangible common equity was 15.6% compared with 14.2% in the year-ago quarter.As of July 31, 2025, the Common Equity Tier-I ratio was 13.5%, up from 13.0% a year ago. The Tier-I capital ratio was 15.5% compared with the previous year’s 14.8%.Our Take on Bank of MontrealBank of Montreal’s focus and efforts align with its organic and business restructuring strategies and are anticipated to support revenues in the upcoming period. However, elevated expenses and an uncertain macroeconomic backdrop stemming from tariffs are headwinds.Bank Of Montreal Price, Consensus and EPS Surprise Bank Of Montreal price-consensus-eps-surprise-chart | Bank Of Montreal Quote    Bank Of Montreal Price, Consensus and EPS Surprise                   Bank Of Montreal price-consensus-eps-surprise-chart | Bank Of Montreal Quote Currently, BMO carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Performance of BMO’s PeersToronto-Dominion Bank’s TD third-quarter fiscal 2025 (ended July 31) results were encouraging. Quarterly adjusted net income of $3.9 billion ($2.81 billion) up 6.2% year over year.TD’s quarterly performance was aided by growth in net interest income, non-interest income, and higher deposit balances. A decline in provisions for credit losses also provided support. However, lower loan balances and higher expenses acted as headwinds.Canadian Imperial Bank of Commerce CM reported third-quarter fiscal 2025 (ended July 31) adjusted earnings per share of C$2.16, which increased 11.9% from the prior-year quarter.CM’s results benefited from an improvement in revenues. Also, loans and deposit balances increased in the quarter. However, higher provisions and expenses  were an undermining factor.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank Of Montreal (BMO): Free Stock Analysis Report Toronto Dominion Bank (The) (TD): Free Stock Analysis Report Canadian Imperial Bank of Commerce (CM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks